Private Limited Company_OPC
The Companies Act of 2013 introduced a revolutionary concept for corporate law with the concept of a “one-person company.” where a company can be formed with only one person serving as both the director and shareholder of the company.
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One Person Company (OPC) must maintain compliance with the Income Tax Act and the Companies Act. Consequently, maintaining compliance for One Person Company primarily entails submitting an income tax return to the Income Tax Department and an annual return to the Ministry of Corporate Affairs. One-person businesses may also be required to comply with TDS regulations, GST regulations, VAT / CST regulations, Service Tax regulations, and ESI regulations, among others. Compliance requirements for a one-person business would vary by industry, state of incorporation, number of employees, and annual sales volume.
In nations such as India, where entrepreneurialism is strongly encouraged. One-Person-Company is one of the most popular business structures for entrepreneurs whose businesses are in their infancy and are intended to grow in the future. One Person Company has a single shareholder, indicating that it is managed and controlled by a single individual. In addition, One Person Company is entitled to a number of privileges not granted to other business structures.
In order to comply with the rules and regulations, One Person Company must maintain annual compliance with the Income Tax Act and the Companies Act. Annual returns and income tax returns are required for one-person businesses. Compared to public or private organizations, registering as an OPC is straightforward and economical in terms of compliance costs.
As each OPC is required to report ROC regarding the assets, liabilities, income, and expenditures of the business annually, OPCs are required to comply. Non-compliance with OPC’s annual compliance requirements incurs severe fines and fees if the business fails to comply. OPC can only be registered as a Private Limited Company in India. Therefore, all legal provisions applicable to Limited Liability Companies are also applicable to OPC. Therefore, annual compliance is required for one-person companies.
There are numerous advantages of an OPC company, including limited liability protection, the ease of raising funds from venture capitalists, and continuous existence, whereas the community’s confidence comes at the expense of increased annual compliance. Business owners must comply with the Companies Act, Income Tax, GST, and State Laws.
In addition to ROC requirements, companies must submit annual income tax returns by September 30. Since 2018, the compliance requirement for OPC companies has increased.
There are a number of advantages of an OPC company, including limited liability protection, the ease of gaining support from financial speculators, and continuous presence.
However, the security of the network comes at the cost of increased annual consistency. Entrepreneurs must comply with the Companies Act, the Income Tax Act, the Goods, and Services Tax, and State Laws. Regardless of ROC compliance, companies must submit annual filing forms by September 30 each year.
Since 2018, the consistency requirement for OPC companies has been expanded. We guarantee that all corporate compliances will be met on time and as expected.
The management of a company consisting of just one person is not an easy task. People who are considering starting their own businesses aren’t always aware of the important compliances that are obligatorily required to be performed. If a company fails to comply with these compliances, the company may be forced to pay significant fines. In addition to being subject to fines, the company and its directors might also be required to enter into an undertaking and cooperate with additional investigations.
Because of this, it is important to point out that the moment a One-Person Company is incorporated, it immediately becomes eligible to carry out the annual compliances that are required of it. The company will face a variety of obstacles, including penalties and fines if it does not comply with the regulations. It is of the utmost importance to be aware of and comply with the applicable compliances in order to prevent situations like these from occurring. It is obligatory for a One-Person Company to make public to its shareholders and investors an accurate representation of its current financial status.
Copy of PAN Card of owner
Passport size photograph of the owner
Copy of Aadhaar Card/ Voter identity card
Copy of Rent agreement (If rented property)
Electricity/ Water bill (Business Place)
Copy of Property papers (If owned property)
Landlord NOC (Format will be provided)
They are exempt from the requirement of holding annual general meetings. Cash flow statements are not required to be included in their financial statements. It is not necessary to have a company secretary sign annual returns because directors are also able to do so. They are not subject to the provisions that pertain to independent directors in any way.
Compliance with the Income Tax Act and the Companies Act is obligatory for One Person Companies (OPCs), as stated in both of those pieces of legislation. As a result, keeping a One Person Company in compliance with the law primarily entails submitting an income tax return to the Income Tax Department and an annual return to the Ministry of Corporate Affairs.
OPC is a good choice for the structure of a small business. At any given time, the OPC can have a maximum of one member in its ranks at all times. It is not possible for OPC to raise additional capital by recruiting additional members or shareholders. As a result, due to the development and progress of the company, we are unable to accept any new members.
Because an OPC is able to accept deposits from its single shareholder, Section 73 might be applicable.
In accordance with the Companies Act of 2013, an amendment is known as the One Person Company (OPC) was implemented. This amendment stipulates that a private company must have a minimum of two directors and members, whereas a public company must have a minimum of three directors and seven members.
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